The Medical Developments International Ltd (ASX: MVP) share price will be on watch on Friday.
This follows the release of the healthcare company's half year results after the market close.
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Medical Developments International share price on watch after big loss
- Revenue down 23% to $9.865 million
- Net loss after tax widened from $1.1 million to $7.4 million
- Cash and cash equivalents of $28.3 million
What happened during the first half?
For the six months ended 31 December, Medical Developments International reported a 23% decline in revenue to $9.865 million. This decline was entirely due to $6.4 million in non-recurring contract income recorded during the prior corresponding period. This overshadowed a 55% increase in core sales, supported by a 131% jump in Australian Penthrox sales.
On the bottom line, Medical Developments International generated a net loss after tax of $7.4 million, compared to a loss of $1.1 million a year earlier. Though, after adjusting for non-operating items, the company's loss was comparable to the prior period.
No dividend was declared for the half once again.
Management commentary
Medical Developments International's Chair, Gordon Naylor, was pleased with the progress the company made during the half.
He said: "I continue to be pleased with the progress being made by Brent and his leadership team to reshape and focus MVP. It is especially encouraging to see early signs that the approach is working. Despite the pandemic challenges, Penthrox sales growth is strong in Europe, our primary growth corridor over the next few years. We're also seeing solid underlying growth in Australian sales and our US respiratory franchise."
"Our renewed focus has meant that we have taken formal decisions to cease further development of continuous flow processes for third parties and to exit the Veterinary segment, allowing our skilled resources to be applied to the core pain segment."
"In another positive development, our next generation Penthrox delivery device ('Selfie') has reached the milestone of formal project approval. Our aim is for Selfie to propel further future business growth. I thank Brent and the MVP team who have been through a challenging time. The challenges aren't over, but I am confident that the company is heading in the right direction," Mr Naylor added.
No guidance has been provided for the remainder of FY 2022.
